XRP has entered a prolonged correction after the powerful rally that unfolded in late 2024. According to TradingView market data, the asset surged sharply after breaking out of a long consolidation range between $0.45 and $0.60.
That breakout triggered strong buying momentum, sending XRP above the $3 mark and eventually toward the $3.30–$3.50 region.
The rally marked one of the strongest periods of expansion in the recent history of XRP. However, as the price reached the upper resistance zone, the momentum started to decline gradually.
The market began to show signs of a distribution phase, as the price was making lower highs with each successive rally. This is usually indicative that the buying interest is diminishing and the selling pressure is taking over the market.
XRP has been in a process of correction for months now. Its current price is around $1.38, and it is currently trading below key weekly averages.
Source: TradingView
Its 20-week average is around $1.85, the 50-week average is around $2.29, and the 100-week average is around $1.77, reflecting this downtrend. Its 200-week average, currently around $1.12, is providing support, even in the face of massive declines in the cryptocurrency market.
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XRP Market Structure Points to Compression Phase
XRP appears to be consolidating in a tighter price range. Resistance continues to decrease, whereas long-term support increases. If the 200-week support fails, we may look at deeper liquidity levels.
An important demand zone is between $0.55 and $0.30, which was the base before the 2024 breakout and may be revisited. Volume data also supports this idea.
Source: TradingView
Historically, we see a high-volume region between $0.50 and $0.60. These are high-volume areas where investors tend to open their positions, and prices tend to return to these zones in deeper corrections.
EGRAG CRYPTO Points to Historic RSI Oversold Zone
Another important indicator was highlighted by market analyst EGRAG CRYPTO on March 10. The analyst shared data indicating XRP’s Relative Strength Index for the week has entered a very oversold zone.
In reviewing past charts, it is evident that similar RSI levels occurred in major market lows in 2014, 2015, 2018, 2020, and 2022. Each time, the oversold indicator occurred at the end of a bear market.
Source: X
The chart displays a long-term oscillator used for displaying momentum from 2014 up until 2026. The oscillator goes from a very bullish condition at the top to a very oversold condition at the bottom.
Every time this oscillator dipped into the red zone from 7 up until 13 on the chart, a major bottom was made in the market before a new growth cycle began. The latest reading indicates a potential late-stage capitulation in the market.
Also Read: XRP Price Action Explained: How $3.5 Resistance Could Unlock New Highs
